The U.K. Competition and Markets Authority (CMA) proposed designating Microsoft with Strategic Market Status (SMS) on Friday. This designation targets the company's business software sector.
The regulator is scrutinizing how Microsoft bundles products including Excel, Teams, and its Copilot AI assistant. The CMA cited Microsoft's long-standing dominance in operating systems and productivity tools.
The SMS designation allows the CMA to impose new rules and remedies to ensure fair competition. The proposal does not imply legal wrongdoing by the company.
A Microsoft spokesperson stated its products remain open and interoperable. The company maintains that customers can use its software alongside competing services.